"This quarter reflects progress on a number of fronts as we drive our
consistent First Choice strategy of earning more, using less and
investing wisely as brand volume grew in developed and developing
markets outside of North America, NSR/HL grew globally, and we grew
underlying EBITDA in constant currency in each of our four business
units."

Mark continued, "The volume growth we are seeing outside North America
is driven by consistency of our First Choice strategy, the breadth and
depth of our global brand portfolio and a positive industry. Europe, our
second largest business unit by volume, is growing consistently and
accelerating the pace of portfolio premiumization while our
International business unit, led by the Latin American markets, posted
mid-teens growth due to the strong performance of our global brands, led
by Coors Light and the Miller Trademark brands of MGD, Miller Lite and
Miller High Life.

"In the U.S., brand volumes or STRs were below industry volumes. As we
have indicated, improving our volume performance in the U.S. is a
priority and the first step is to improve our share performance through
Coors Light and accelerated premiumization of the portfolio.

"Additionally, across Molson Coors we are over delivering on our synergy
and cost savings program to counter higher than anticipated commodity
inflation and maintain our deleverage commitment and dividend plan."

Consolidated Performance - Third Quarter 2018

Three Months Ended

($ in millions, except per share data) (Unaudited)

September 30,2018

September 30,2017

Reported% Increase(Decrease)

ForeignExchangeImpact ($)

ConstantCurrency% Increase(Decrease)(2)

Net Sales

$

2,934.2

$

2,883.2

1.8

%

$

(22.4

)

2.5

%

U.S. GAAP Net income (loss)(1)

$

338.3

$

287.0

17.9

%

Per diluted share

$

1.56

$

1.33

17.3

%

Underlying (Non-GAAP) Net income (loss)(2)

$

398.5

$

296.5

34.4

%

Per diluted share

$

1.84

$

1.37

34.3

%

Underlying EBITDA (Non-GAAP)(2)

$

756.7

$

688.6

9.9

%

$

(8.1

)

11.1

%

Nine Months Ended

($ in millions, except per share data) (Unaudited)

September 30,2018

September 30,2017

Reported% Increase(Decrease)

ForeignExchangeImpact ($)

ConstantCurrency% Increase(Decrease)(2)

Net Sales

$

8,350.9

$

8,423.2

(0.9

)%

$

89.2

(1.9

)%

U.S. GAAP Net income (loss)(1)

$

1,040.5

$

825.4

26.1

%

Per diluted share

$

4.80

$

3.81

26.0

%

Underlying (Non-GAAP) Net income (loss)(2)

$

908.9

$

835.8

8.7

%

Per diluted share

$

4.20

$

3.86

8.8

%

Underlying EBITDA (Non-GAAP)(2)

$

1,966.0

$

2,015.6

(2.5

)%

$

7.7

(2.8

)%

(1)

Net income (loss) attributable to MCBC.

(2)

See Appendix for definitions and reconciliations of non-GAAP
financial measures.

Quarterly Highlights(versus Third Quarter 2017 Results)

Net sales: $2.9 billion, increased by 1.8 percent, driven by
positive global net pricing in all segments, higher financial volume
in Europe, U.S. and Canada and favorable mix in Europe, partially
offset by unfavorable foreign currency movements and the adoption of
the new revenue recognition accounting standard (discussed in the
Appendix below). Net sales in constant currency increased 2.5 percent.

Net sales per HL: $110.67 on a reported financial-volume basis,
increased 0.9 percent. Net sales per HL on a brand volume basis(1)
in constant currency increased by 0.4 percent, driven by positive
global net pricing as well as favorable mix in Europe, partially
offset by the adoption of the new revenue recognition accounting
standard.

Volume: Worldwide brand volume of 25.3 million hectoliters
decreased 1.0 percent driven by declines in the U.S. and Canada,
partially offset by growth in Europe and International. Financial
volume of 26.5 million hectoliters increased 0.8 percent, driven by
Europe, U.S. and Canada. Global priority brand volume decreased 1.4
percent.

U.S. GAAP net income attributable to MCBC increased 17.9
percent, driven by higher net sales, a net benefit to U.S. MG&A
resulting from the amicable resolution of a dispute with a vendor,
global marketing optimization, cost savings to manage inflationary
pressure, partially offset by higher special charges and unrealized
mark-to-market changes on commodity positions. This performance
further benefited from lower income tax expense driven by the
reduction to the U.S. federal income tax rate and discrete tax
benefits.

Underlying net income increased 34.4 percent, driven by the
same factors as U.S. GAAP results with the exception of special
charges and unrealized mark-to-market changes.

Underlying EBITDA: Increased 9.9 percent on a reported basis
and increased 11.1 percent on a constant-currency basis, driven by
higher net sales, a net benefit to U.S. MG&A resulting from the
amicable resolution of a dispute with a vendor, global marketing
optimization, and cost savings to manage inflationary pressures.

U.S. GAAP cash from operations: Net cash provided by operating
activities for the first three quarters of 2018was
approximately $1.8 billion, which represents an improvement of $646.0
million from the prior year, driven by the $328 million cash payment
received in January 2018 related to the receipt of a purchase price
adjustment for our acquisition of the Miller International business,
as well as lower cash paid for pension contributions and lower
interest paid.

Underlying free cash flow: cash received of $1.0 billion for
the first three quarters, which represents an increase of $189.0
million from the prior year, driven by lower cash paid for pension
contributions and lower interest paid, partially offset by lower
underlying EBITDA and higher cash paid for capital expenditures.

Debt: During the third quarter, we repaid our CAD 400 million
2.25% notes with cash on hand as part of our deleverage commitment
resulting in total debt and cash and cash equivalents of $10.6 billion
and $750.1 million, respectively, or net debt of $9.8 billion, at the
end of the third quarter of 2018.

(1)

Brand Volume Basis NSR/HL: Effective
in the first quarter of 2018, we have revised our net sales
revenue (NSR) per HL performance discussions to be on a brand
volume basis, with all per-hectoliter calculations including owned
and actively managed brands, along with royalty volume, in the
denominator, as well as the financial impact of these sales in the
numerator, unless otherwise indicated. See Appendix for
definitions.

Business Review - Third Quarter 2018

Net Sales

($ in millions) (Unaudited)

Three Months Ended

September 30,2018

September 30,2017

Reported% Increase(Decrease)

ForeignExchangeImpact ($)

ConstantCurrency% Increase(Decrease)(1)

United States

$

1,935.8

$

1,892.2

2.3

%

$

—

2.3

%

Canada

388.9

406.4

(4.3

)%

(16.2

)

(0.3

)%

Europe

577.9

561.2

3.0

%

(4.6

)

3.8

%

International

67.0

65.7

2.0

%

(1.6

)

4.4

%

Corporate

0.2

0.3

(33.3

)%

—

(33.3

)%

Eliminations(2)

(35.6

)

(42.6

)

16.4

%

—

16.4

%

Consolidated

$

2,934.2

$

2,883.2

1.8

%

$

(22.4

)

2.5

%

(1)

See Appendix for definitions and reconciliations of non-GAAP
financial measures.

(2)

Reflects intercompany sales that are eliminated in consolidated
totals.

Pretax Income (U.S. GAAP)

($ in millions) (Unaudited)

Three Months Ended

September 30,2018

September 30,2017

Reported% Increase(Decrease)

ForeignExchangeImpact ($)

ConstantCurrency% Increase(Decrease)(1)

United States

$

374.2

$

367.1

1.9

%

$

(0.7

)

2.1

%

Canada

77.5

77.2

0.4

%

(2.8

)

4.0

%

Europe

96.0

94.9

1.2

%

(0.5

)

1.7

%

International

(1.0

)

(6.0

)

83.3

%

(2.5

)

125.0

%

Corporate

(136.6

)

(92.7

)

(47.4

)%

0.6

(48.0

)%

Consolidated

$

410.1

$

440.5

(6.9

)%

$

(5.9

)

(5.6

)%

(1)

See Appendix for definitions and reconciliations of non-GAAP
financial measures.

Underlying EBITDA (Non-GAAP)(1)

($ in millions) (Unaudited)

Three Months Ended

September 30,2018

September 30,2017

Reported% Increase(Decrease)

ForeignExchangeImpact ($)

ConstantCurrency% Increase(Decrease)(1)

United States

$

526.1

$

477.6

10.2

%

$

(0.7

)

10.3

%

Canada

112.6

113.0

(0.4

)%

(4.3

)

3.5

%

Europe

144.1

136.9

5.3

%

(0.7

)

5.8

%

International

2.9

(1.0

)

N/M

(2.2

)

N/M

Corporate

(29.0

)

(37.9

)

23.5

%

(0.2

)

24.0

%

Consolidated

$

756.7

$

688.6

9.9

%

$

(8.1

)

11.1

%

N/M = Not meaningful

(1)

See Appendix for definitions and reconciliations of non-GAAP
financial measures.

United States Business

Volume: U.S. brand volume decreased 3.3 percent for the
quarter, primarily driven by lower volume in the premium light
segment. Sales-to-wholesalers (STWs), excluding contract brewing,
volume increased 1.1 percent driven by an increase in distributor
inventories to support further ordering system implementations at our
breweries. These increased distributor inventory levels at the end of
the third quarter are expected to remain through the end of the year
as we prepare for future implementations at our remaining breweries,
which are currently expected to occur in 2019.

Marketing, general and administrative (MG&A) expense
decreased 8.2 percent due to a net benefit from the amicable
resolution of a vendor dispute, which drove nearly half of the
decline, as well as spending optimization and efficiencies and lower
employee-related expenses.

On a U.S. GAAP basis, U.S. pretax income increased 1.9 percent
to $374.2 million, driven by higher STWs from an increase in
distributor inventories, higher net pricing and lower MG&A expenses,
partially offset by higher COGS, higher special charges related to
restructuring, as well as negative sales mix.

U.S. underlying EBITDA increased 10.2 percent to $526.1
million, driven by the same factors as U.S. GAAP results with the
exception of special charges.

Canada Business

Volume: Canada brand volume decreased 1.4 percent in the third
quarter, as a result of lower volumes in the West, partially offset by
growth in Ontario and Quebec. Financial volume increased 0.4 percent.

Revenue: Net sales per hectoliter (brand volume basis)
decreased 2.0 percent in local currency, driven by our adoption of the
new revenue recognition accounting standard, which reduced net sales
by approximately $14 million in the quarter with a corresponding
benefit to MG&A. Excluding the effect of the new accounting standard,
NSR per HL (brand volume basis) increased 1.6 percent in local
currency due to higher net pricing, partially offset by negative brand
mix.

MG&A expense decreased 11.8 percent in local currency,
primarily driven by the approximate $14 million favorable impact of
the new revenue recognition accounting standard. Excluding the impact
of the new revenue recognition accounting standard, marketing and
brand investments increased slightly during the quarter.

On a U.S. GAAP basis, Canada reported pretax income of
$77.5 million, a 0.4 percent increase from the prior year, driven by
positive pricing, partially offset by negative sales mix and input
cost inflation.

Canada underlying EBITDA increased 3.5 percent in constant
currency to $112.6 million in the quarter, due to the same factors as
U.S. GAAP results.

Europe Business

Volume: Europe brand volume increased 2.1 percent in the third
quarter versus a year ago, as a result of improved above premium and
core brand performance. Europe financial volume increased 1.1 percent.

Revenue: Europe net sales per hectoliter (brand volume basis)
increased 2.1 percent in local currency, driven by positive sales mix.
This was partially offset by negative pricing due to the impact of
adopting recently revised excise-tax guidelines in one of our European
markets as well as increasing our investment behind our First Choice
Agenda this year.

COGS per hectoliter increased 4.5 percent in local currency,
due to input inflation and mix shift to higher-cost brands and
geographies.

MG&A expense decreased 3.2 percent in local currency,
primarily driven by spend efficiency of brand investments and the
impact of adopting the new revenue recognition accounting standard.

On a U.S. GAAP basis, Europe reported pretax income of
$96.0 million, an increase of 1.2 percent driven by a favorable mix
shift from our premiumization efforts and more efficient marketing
investments. These factors were partially offset by adopting recently
revised excise tax guidelines in one of our European markets,
investments in our First Choice Agenda and unfavorable foreign
currency movements.

Europe underlying EBITDA increased 5.8 percent in constant
currency to $144.1 million, due to the same factors as U.S. GAAP
results.

International Business

Volume: International brand volume increased by 13.8 percent in
the third quarter, driven by organic growth in our focus markets.

Revenue: Net sales per hectoliter (brand volume basis)
decreased by 10.3 percent, driven by sales mix changes and shifting to
local production in Mexico, partially offset by positive net pricing.

On a U.S. GAAP basis, International reported a pretaxloss
of $1.0 million versus a loss of $6.0 million a year ago, driven
by volume growth in our focus markets, higher net pricing, shifting to
a more profitable business model in Mexico, along with lower marketing
and integration expenses, partially offset by negative foreign
currency movements.

International underlying EBITDA was $2.9 million in the third
quarter, compared to $1.0 million loss a year ago, driven by
the same factors as U.S. GAAP with the exception of integration
charges.

Corporate

On a U.S. GAAP basis, Corporate reported a pretax loss of
$136.6 million in the third quarter compared to a loss of $92.7
million in the prior year, due to unrealized mark-to-market losses on
commodity swaps, primarily our aluminum positions, compared to gains a
year ago, partially offset by lower interest expense and lower general
and administrative costs in the current year.

Corporate underlying EBITDA was a loss of $29.0 million for the
third quarter versus a $37.9 million loss in the prior year, driven
primarily by lower general and administrative costs.

Worldwide Brand and Financial Volume(1)

(In millions of hectoliters) (Unaudited)

Three Months Ended

September 30,2018

% Change

September 30,2017

Financial Volume(1)

26.513

0.8

%

26.290

Contract brewing, wholesaler and non-beer volume

(2.222

)

(0.8

)%

(2.239

)

Royalty volume

1.171

23.7

%

0.947

Sales-To-Wholesaler to Sales-To-Retail adjustment

(0.178

)

N/M

0.532

Total Worldwide Brand Volume(1)

25.284

(1.0

)%

25.530

N/M = Not meaningful

(1)

See Appendix for definitions and additional discussion regarding
Financial and Worldwide Brand Volume.

Other Results

Effective Income Tax Rates

Three Months Ended

September 30, 2018

September 30, 2017

U.S. GAAP effective tax rate

16

%

33

%

Underlying effective tax rate

16

%

27

%

The U.S. GAAP effective tax rate and the underlying
effective tax rate decreased from a year ago, primarily due to the
reduction of the U.S. federal statutory corporate income tax rate to
21 percent as a result of U.S. tax reform and the net impact of
discrete items. The net discrete tax benefit recognized in 2018 was
driven primarily by the release of uncertain tax positions during the
third quarter related to finalizing our bilateral advanced pricing
agreement with the Canadian Revenue Agency and U.S. Internal Revenue
Service.

Special and Other Non-Core Items

The following special and other non-core items have been excluded
from underlying results. See the Appendix for reconciliations of
non-GAAP financial measures.

During the third quarter of 2018, MCBC recognized a net special
charge of $36.6 million, driven by U.S. restructuring charges and
asset abandonment charges, primarily accelerated depreciation related
to brewery closures.

Additionally, other non-core net charges of $35.3 million
primarily include unrealized mark-to-market losses on commodity hedges
as well as integration-related expenses.

2018 Outlook

The following guidance for full year 2018 is unchanged from previous
disclosures, unless otherwise indicated:

Underlyingfree cash flow: $1.5 billion, plus or minus
10 percent, which excludes the $328 million cash payment received in
January 2018 related to resolving a purchase price adjustment to our
October 2016 acquisition of the Miller International business.

Transaction-related metrics: approximately $200 million
(included in free cash flow guidance) of cash tax benefits and
approximately $55 million of after-tax book amortization.

Underlying effective tax rate in the range of 17 to 19 percent
for 2018, following the enactment of U.S. tax reform. Subject to
additional definitive guidance from the U.S. government regarding the
implementation of the recently passed tax reform legislation, the
company's preliminary view of its long-term effective tax rate (after
2018) is in the range of 20 to 24 percent. - Updated (formerly 18
to 22 percent for 2018)

Deleverage & Dividend: As communicated in June, we remain
committed to maintaining our investment grade rating and currently
plan to achieve approximately 4x leverage on a rating agency basis by
the end of 2018. We plan to achieve about 3.75x rating agency leverage
around the middle of 2019. Additionally, as a reminder, we also
previously communicated in June of this year that upon achieving about
3.75x leverage, our board's intention is to reinstitute a dividend
payout-ratio target in the range of 20-25% of annual trailing
underlying EBITDA for the second half of 2019 and ongoing thereafter.

In addition, our 2018 results are also being impacted by the adoption
of the new revenue recognition accounting standard, as well as
guidance changing the presentation of pension and other postretirement
benefit (OPEB) costs.

The new revenue recognition accounting standard became
effective for us at the beginning of 2018, and we have elected the
modified retrospective adoption method. Therefore, prior period
results have not been restated, but results under the old standard
will continue to be disclosed throughout 2018 for comparability,
as required by the standard. Along with some timing changes
between quarters, this adoption changes the presentation of our
results. We currently anticipate that the impact of this change
will result in a reduction of both revenue and marketing, general
and administrative expenses by approximately $60 million to $65
million during 2018, primarily within our Canada segment, with no
impact to full year net income. See Appendix for detailed impacts
on 2018 results from our adoption of the new revenue recognition
accounting standard.

Under the new pension guidance, we are continuing to report
the service cost component of net periodic pension and OPEB costs
or income in our business segment operating results. Beginning in
2018, however, all other components of net periodic pension and
OPEB cost or income are being reported in Corporate outside of
operating income. Prior period results for each of our segments
and Consolidated have been restated retrospectively for this
change, as required by the guidance, with no impact to
consolidated net income. This accounting change primarily impacts
the reported results of our Europe segment. See Appendix below.

The impacts of these accounting changes are discussed in further
detail within footnote 2 of our 2017 Form 10-K and our 2018
quarterly reports on Form 10-Q.

Notes

Unless otherwise indicated in this release, all $ amounts are in U.S.
Dollars, and all quarterly comparative results are for the Company’s
third quarter ended September 30, 2018, compared to the third quarter
ended September 30, 2017. Prior year results have been adjusted to
reflect the retrospective adoption of new pension accounting guidance,
as described above. Effective in the first quarter of 2018, we have
revised our net sales revenue (NSR) per HL performance discussions to be
on a brand volume basis, such that all per-hectoliter calculations now
include owned and actively managed brand volume, along with royalty
volume, in the denominator, as well as the financial impact of these
sales in the numerator, unless otherwise indicated. Some numbers may not
sum due to rounding.

As used in this release, the term “Acquisition” refers to the Company’s
acquisition from Anheuser-Busch InBev SA/NV on October 11, 2016, of
SABMiller plc’s 58 percent economic interest and 50 percent voting
interest in MillerCoors LLC and all trademarks, contracts and other
assets primarily related to the Miller International business outside of
the U.S. and Puerto Rico.

2018 Third Quarter Conference Call

Molson Coors Brewing Company will conduct an earnings conference call
with financial analysts and investors at 11:00 a.m. Eastern Time today
to discuss the Company’s 2018 third quarter results. The live webcast
will be accessible via the Company’s website, www.molsoncoors.com.
An online replay of the webcast will be available until 11:59 p.m.
Eastern Time on February 11, 2019. The Company will post this release
and related financial statements on its website today.

Overview of Molson Coors

Molson Coors has defined brewing greatness for more than two centuries.
As one of the largest global brewers, Molson Coors works to deliver
extraordinary brands that delight the world’s beer drinkers. From Coors
Light, Coors Banquet, Miller Lite, Molson Canadian, Carling, Staropramen
and Sharp’s Doom Bar to Leinenkugel’s Summer Shandy, Blue Moon Belgian
White, Hop Valley, Creemore Springs and Crispin Cider, Molson Coors
offers a beer for every beer lover.

Molson Coors operates through Molson Coors Canada, MillerCoors in the
U.S., Molson Coors Europe and Molson Coors International. The company is
not only committed to brewing extraordinary beers, but also running a
business focused on respect for its employees, communities and drinkers,
which means corporate responsibility and accountability right from the
start. It has been listed on the Dow Jones Sustainability Index for the
past seven years. To learn more about Molson Coors Brewing Company,
visit molsoncoors.com,
ourbeerprint.com
or on Twitter through @MolsonCoors.

About Molson Coors Canada Inc.

Molson Coors Canada Inc. (MCCI) is a subsidiary of Molson Coors Brewing
Company. MCCI Class A and Class B exchangeable shares offer
substantially the same economic and voting rights as the respective
classes of common shares of MCBC, as described in MCBC’s annual proxy
statement and Form 10-K filings with the U.S. Securities and Exchange
Commission. The trustee holder of the special Class A voting stock and
the special Class B voting stock has the right to cast a number of votes
equal to the number of then outstanding Class A exchangeable shares and
Class B exchangeable shares, respectively.

Forward-Looking Statements

This press release includes “forward-looking statements” within the
meaning of the U.S. federal securities laws.Generally, the words
“believe,” “expect,” “intend,” “anticipate,” “project,” “will,”
“outlook,” and similar expressions identify forward-looking statements,
which generally are not historic in nature.Although the Company
believes that the assumptions upon which its forward-looking statements
are based are reasonable, it can give no assurance that these
assumptions will prove to be correct. Important factors that could cause
actual results to differ materially from the Company’s historical
experience, and present projections and expectations are disclosed in
the Company’s filings with the Securities and Exchange Commission
(“SEC”).These factors include, among others, our ability to
successfully integrate and achieve expected tax benefits, accretion and
cost savings and synergies relating to the Acquisition; impact of
increased competition resulting from further consolidation of brewers,
competitive pricing and product pressures; health of the beer industry
and our brands in our markets; economic conditions in our markets;
additional impairment charges; our ability to maintain
manufacturer/distribution agreements; changes in our supply chain
system; availability or increase in the cost of packaging materials;
success of our joint ventures; risks relating to operations in
developing and emerging markets; changes in legal and regulatory
requirements, including the regulation of distribution systems;
fluctuations in foreign currency exchange rates; increase in the cost of
commodities used in the business; the impact of climate change and the
availability and quality of water; loss or closure of a major brewery or
other key facility; our ability to implement our strategic initiatives,
including executing and realizing cost savings; our ability to
successfully integrate newly acquired businesses; pension plan and other
post-retirement benefit costs; failure to comply with debt covenants or
deterioration in our credit rating; our ability to maintain good labor
relations; our ability to maintain brand image, reputation and product
quality; and other risks discussed in our filings with the SEC,
including our most recent Annual Report on Form 10-K and our Quarterly
Reports on Form 10-Q.All forward-looking statements in this
press release are expressly qualified by such cautionary statements and
by reference to the underlying assumptions. You should not place undue
reliance on forward-looking statements, which speak only as of the date
they are made.We do not undertake to update forward-looking
statements, whether as a result of new information, future events or
otherwise.

APPENDIX

Consolidated Financial Performance

Molson Coors Brewing Company

Three Months Ended September 30, 2018

% Change

(In millions, except per share data)(Unaudited)

U.S. GAAP

Non-GAAPAdjustments(1)

Non-GAAPUnderlying(1)

U.S. GAAP

Non-GAAPUnderlying

Net sales

$

2,934.2

$

—

$

2,934.2

1.8

%

1.8

%

Net Sales per HL change

0.9

%

0.9

%

Cost of goods sold

$

(1,714.0

)

$

24.5

$

(1,689.5

)

7.9

%

3.4

%

Cost of goods sold per HL change

6.9

%

2.6

%

Gross profit

$

1,220.2

$

24.5

$

1,244.7

(5.7

)%

(0.4

)%

Marketing, general and administrative expenses

$

(713.9

)

$

8.8

$

(705.1

)

(8.9

)%

(8.4

)%

Special items, net

$

(36.6

)

$

36.6

$

—

N/M

—

%

Operating income (loss)

$

469.7

$

69.9

$

539.6

(7.2

)%

12.3

%

Interest income (expense), net

$

(67.4

)

$

—

$

(67.4

)

(7.2

)%

(7.2

)%

Other pension and postretirement benefits (costs), net

$

7.6

$

2.0

$

9.6

(20.8

)%

—

%

Other income (expense), net

$

0.2

$

—

$

0.2

N/M

N/M

Income (loss) before income taxes

$

410.1

$

71.9

$

482.0

(6.9

)%

16.2

%

Income tax benefit (expense)

$

(64.5

)

$

(11.7

)

$

(76.2

)

(56.2

)%

(32.1

)%

Net income (loss)(2)

$

338.3

$

60.2

$

398.5

17.9

%

34.4

%

Per diluted share

$

1.56

$

0.28

$

1.84

17.3

%

34.3

%

Underlying EBITDA(3)

$

756.7

9.9

%

Molson Coors Brewing Company

Nine Months Ended September 30, 2018

% Change

(In millions, except per share data)(Unaudited)

U.S. GAAP

Non-GAAPAdjustments(1)

Non-GAAPUnderlying(1)

U.S. GAAP

Non-GAAPUnderlying

Net sales

$

8,350.9

$

—

$

8,350.9

(0.9

)%

(0.9

)%

Net Sales per HL change

1.0

%

1.0

%

Cost of goods sold

$

(4,988.8

)

$

66.7

$

(4,922.1

)

5.8

%

2.7

%

Cost of goods sold per HL change

7.8

%

4.6

%

Gross profit

$

3,362.1

$

66.7

$

3,428.8

(9.3

)%

(5.5

)%

Marketing, general and administrative expenses

$

(2,139.7

)

$

26.1

$

(2,113.6

)

(5.8

)%

(5.0

)%

Special items, net

$

267.7

$

(267.7

)

$

—

N/M

—

%

Operating income (loss)

$

1,490.1

$

(174.9

)

$

1,315.2

5.9

%

(6.3

)%

Interest income (expense), net

$

(227.3

)

$

—

$

(227.3

)

(12.0

)%

(12.0

)%

Other pension and postretirement benefits (costs), net

$

27.5

$

2.1

$

29.6

(14.9

)%

0.7

%

Other income (expense), net

$

0.2

$

—

$

0.2

—

%

N/M

Income (loss) before income taxes

$

1,290.5

$

(172.8

)

$

1,117.7

9.2

%

(4.2

)%

Income tax benefit (expense)

$

(231.6

)

$

41.2

$

(190.4

)

(31.6

)%

(39.1

)%

Net income (loss)(2)

$

1,040.5

$

(131.6

)

$

908.9

26.1

%

8.7

%

Per diluted share

$

4.80

$

(0.60

)

$

4.20

26.0

%

8.8

%

Underlying EBITDA(3)

$

1,966.0

(2.5

)%

N/M = Not meaningful

(1)

Refer to the table "Reconciliation to Nearest U.S. GAAP Measures"
for detailed descriptions and reconciliation of non-GAAP adjustments
and results.

(2)

Net income (loss) attributable to MCBC.

(3)

EBITDA is earnings before interest, taxes, depreciation and
amortization, a non-GAAP financial measure.

Adoption of Revenue Recognition Guidance

The new revenue recognition accounting standard became effective for us
at the beginning of 2018. We have adopted the new standard using the
modified retrospective approach, and, therefore, prior period results
have not been restated. However, results under the old standard will
continue to be disclosed throughout 2018 for comparability, as required
by the standard. The following table highlights the impact of this new
guidance on summarized components of our unaudited condensed
consolidated statement of operations for the three months ended
September 30, 2018, when comparing our current period results of
operations under the new guidance, versus our results of operations if
historical guidance had continued to be applied.

These impacts are driven primarily by the reclassification of certain
cash payments to customers from marketing, general and administrative
expenses to a reduction of revenue, as well as a change in the timing of
recognition of certain promotional discounts and cash payments to
customers. For further discussion regarding the impacts of the adoption
of this new guidance, refer to footnote 2 within our third quarter 2018
Form 10-Q.

Adoption of Pension and Other Postretirement Benefit Accounting
Pronouncement

During the first quarter of 2018, we adopted the FASB's new guidance
related to classification of pension and other postretirement benefit
costs. Specifically, the new guidance requires us only to report the
service cost component in the same line item as other compensation costs
arising from services rendered by the pertinent employees during the
period; while the other components of net benefit cost are now presented
in the statements of operations separately from the service cost
component and outside of operating income. We have also determined that
only service cost will be reported within each operating segment, and
all other components will be reported within the Corporate segment.
These changes to the results of each quarter and full year 2017 were
included in the first quarter Earnings Release. See the Company's third
quarter 2018 10-Q filing for additional detail.

Worldwide Brand and Financial Volumes

Worldwide brand volume reflects only owned brands sold to unrelated
external customers within our geographic markets (net of returns and
allowances), royalty volume and our proportionate share of equity
investment worldwide brand volume calculated consistently with MCBC
owned volume. Contract brewing and wholesaler volume is included within
financial volume, but is removed from worldwide brand volume, as this is
non-owned volume for which we do not directly control performance. Our
worldwide brand volume definition also includes an adjustment from
Sales-to-Wholesaler (STW) volume to Sales-to-Retailer (STR) volume. We
believe the brand volume metric is important because, unlike financial
volume and STWs, it provides the closest indication of the performance
of our brands in relation to market and competitor sales trends.

Effective in the first quarter of 2018, we revised our net sales revenue
(NSR) per HL performance discussions to be on a brand volume basis, such
that all per-hectoliter calculations now include owned and actively
managed brand volume, along with royalty volume, in the denominator, as
well as the financial impact of these sales in the numerator, unless
otherwise indicated.

Use of Non-GAAP Measures

In addition to financial measures presented on the basis of accounting
principles generally accepted in the U.S. ("U.S. GAAP"), we also present
constant currency, "underlying pretax and net income," "underlying
income per diluted share," "underlying effective tax rate," and
"underlying free cash flow," which are non-GAAP measures and should be
viewed as supplements to (not substitutes for) our results of operations
presented under U.S. GAAP. We also present underlying earnings before
interest, taxes, depreciation, and amortization ("underlying EBITDA") as
a non-GAAP measure, as well as underlying EBITDA margin, which is
calculated by dividing underlying EBITDA by U.S. GAAP net sales. Our
management uses underlying income, underlying income per diluted share,
underlying EBITDA (and margin), and underlying effective tax rate as
measures of operating performance, as well as underlying free cash flow
in the measure of cash generated from core operations, to assist in
comparing performance from period to period on a consistent basis; as a
measure for planning and forecasting overall expectations and for
evaluating actual results against such expectations; in communications
with the board of directors, stockholders, analysts and investors
concerning our financial performance; as useful comparisons to the
performance of our competitors; and as metrics of certain management
incentive compensation calculations. We believe that underlying income,
underlying income per diluted share, underlying EBITDA (and margin), and
underlying effective tax rate performance are used by, and are useful
to, investors and other users of our financial statements in evaluating
our operating performance, as well as underlying free cash flow in
evaluating our generation of cash from core operations, because they
provide an additional tool to evaluate our performance without regard to
special and non-core items, which can vary substantially from company to
company depending upon accounting methods and book value of assets and
capital structure. In addition to the reasons discussed above, we
consider underlying free cash flow an important measure of our ability
to generate cash, grow our business and enhance shareholder value,
driven by core operations and after adjusting for non-core items. In
addition, constant-currency results exclude the impact of foreign
currency movements. For discussion and analysis of our liquidity, see
the consolidated statements of cash flows and the Liquidity and Capital
Resources section of our Management’s Discussion and Analysis of
Financial Condition and Results of Operations in our latest Form 10-K
and 10-Q filings with the SEC.

We have provided reconciliations of all historical non-GAAP measures to
their nearest U.S. GAAP measure and have consistently applied the
adjustments within our reconciliations in arriving at each non-GAAP
measure. These adjustments consist of special items from our U.S. GAAP
financial statements as well as other non-core items, such as
acquisition and integration related costs, unrealized mark-to-market
gains and losses, and gains and losses on sales of non-operating assets,
included in our U.S. GAAP results that warrant adjustment to arrive at
non-GAAP results. We consider these items to be necessary adjustments
for purposes of evaluating our ongoing business performance and are
often considered non-recurring. Such adjustments are subjective and
involve significant management judgment.

Our guidance for underlying Corporate MG&A, underlying depreciation and
amortization, underlying free cash flow and underlying effective tax
rate are also non-GAAP financial measures that exclude or otherwise have
been adjusted for special items from our U.S. GAAP financial statements
as well as other non-core items, such as acquisition and integration
related costs, unrealized mark-to-market gains and losses, and gains and
losses on sales of non-operating assets, included in our U.S. GAAP
results that warrant adjustment to arrive at non-GAAP results. We
consider these items to be necessary adjustments for purposes of
evaluating our ongoing business performance and are often considered
non-recurring. Such adjustments are subjective and involve significant
management judgment. We are unable to reconcile the above described
guidance measures to their nearest U.S. GAAP measures without
unreasonable efforts because we are unable to predict with a reasonable
degree of certainty the actual impact of the special and other non-core
items. By their very nature, special and other non-core items are
difficult to anticipate with precision because they are generally
associated with unexpected and unplanned events that impact our company
and its financial results. Therefore, we are unable to provide a
reconciliation of these measures.

Constant currency is a non-GAAP measure utilized by Molson Coors
management to measure performance, excluding the impact of foreign
currency movements. As we operate in various foreign countries where the
local currency may strengthen or weaken significantly versus the U.S.
dollar or other currencies used in operations, we utilize a constant
currency measure as an additional metric to evaluate the underlying
performance of each business without consideration of foreign currency
movements. This information is non-GAAP and should be viewed as a
supplement to (not a substitute for) our reported results of operations
under U.S. GAAP. We calculate the impact of foreign exchange on net
sales, pretax income, non-GAAP underlying EBITDA and non-GAAP underlying
pretax income using the following steps:

Multiply our current period local currency operating results (that
also include the impact of the comparable prior-period currency
hedging activities) by the weighted average foreign exchange rates
used to translate the financial statements in the comparable prior
year period. The result is the current-period operating results in
U.S. dollars, as if foreign exchange rates had not changed from the
prior-year period.

Subtract the result in step 1 from the unadjusted current-period
reported operating result in U.S. dollars (U.S. GAAP measure). This
difference reflects the impact of foreign currency translational
gains/losses included in the current-period results.

Determine the amount of actual non-operating foreign currency
gains/losses realized as a result of hedging activities and activities
transacted in a currency other than the functional currency of each
legal entity.

Add the results of steps 2 and 3 above. This sum equals the total
impact of foreign currency translational gains/losses and realized
gains/losses from foreign currency transactions. This is the value
shown in the “Foreign Exchange $ Impact” column within the table above.

Reconciliations to Nearest U.S. GAAP Measures

Underlying EBITDA

($ in millions) (Unaudited)

Three Months Ended

September 30,2018

% change

September 30,2017

U.S. GAAP: Net income (loss) attributable to MCBC

$

338.3

17.9

%

$

287.0

Add: Net income (loss) attributable to noncontrolling
interests

7.3

19.7

%

6.1

U.S. GAAP: Net income (loss)

345.6

17.9

%

293.1

Add: Interest expense (income), net

67.4

(7.2

)%

72.6

Add: Income tax expense (benefit)

64.5

(56.2

)%

147.4

Add: Depreciation and amortization

214.6

3.0

%

208.3

Adjustments included in underlying income(1)

71.9

N/M

(25.7

)

Adjustments to arrive at underlying EBITDA(2)

(7.3

)

2.8

%

(7.1

)

Non-GAAP: Underlying EBITDA

$

756.7

9.9

%

$

688.6

($ in millions) (Unaudited)

Nine Months Ended

September 30,2018

% change

September 30,2017

U.S. GAAP: Net income (loss) attributable to MCBC

$

1,040.5

26.1

%

$

825.4

Add: Net income (loss) attributable to noncontrolling
interests

18.4

4.0

%

17.7

U.S. GAAP: Net income (loss)

1,058.9

25.6

%

843.1

Add: Interest expense (income), net

227.3

(12.0

)%

258.4

Add: Income tax expense (benefit)

231.6

(31.6

)%

338.5

Add: Depreciation and amortization

644.2

6.6

%

604.3

Adjustments included in underlying income(1)

(172.8

)

N/M

(15.3

)

Adjustments to arrive at underlying EBITDA(2)

(23.2

)

73.1

%

(13.4

)

Non-GAAP: Underlying EBITDA

$

1,966.0

(2.5

)%

$

2,015.6

N/M = Not meaningful

(1)

Includes adjustments to non-GAAP underlying income within the table
above related to special and non-core items.

(2)

Represents adjustments to remove amounts related to interest,
depreciation and amortization included in the adjustments to
non-GAAP underlying income above, as these items are added back as
adjustments to net income attributable to MCBC.

Underlying Free Cash Flow

(In millions) (Unaudited)

Nine Months Ended

September 30,2018

September 30,2017

U.S. GAAP:

Net Cash Provided by (Used In) Operating Activities

$

1,791.4

$

1,145.4

Less:

Additions to properties(1)

(491.0

)

(466.0

)

Add/Less:

Cash impact of special items(2)

(319.4

)

82.0

Add:

Non-core costs related to acquisition of businesses(3)

44.4

75.0

Non-GAAP:

Underlying Free Cash Flow

$

1,025.4

$

836.4

(1)

Included in net cash used in investing activities.

(2)

Included in net cash provided by (used in) operating activities. For
the nine months ended September 30, 2018, primarily reflects the
settlement payment received relating to a purchase price adjustment
and for the nine months ended September 30, 2017, primarily reflects
costs paid for brewery closures and restructuring activities.

(3)

Included in net cash provided by operating activities and reflects
integration costs paid associated with the Acquisition of 58% of
MillerCoors, LLC, and the Miller global brand portfolio.

Statements of Operations -- Molson Coors Brewing Company and
Subsidiaries

Condensed Consolidated Statements of
Operations

(In millions, except per share data)(Unaudited)

Three Months Ended

Nine Months Ended

September 30,2018

September 30,2017

September 30,2018

September 30,2017

Financial volume in hectoliters

26.513

26.290

75.071

76.508

Sales

$

3,625.1

$

3,552.9

$

10,313.6

$

10,259.8

Excise taxes

(690.9

)

(669.7

)

(1,962.7

)

(1,836.6

)

Net sales

2,934.2

2,883.2

8,350.9

8,423.2

Cost of goods sold

(1,714.0

)

(1,589.1

)

(4,988.8

)

(4,716.9

)

Gross profit

1,220.2

1,294.1

3,362.1

3,706.3

Marketing, general and administrative expenses

(713.9

)

(783.8

)

(2,139.7

)

(2,271.5

)

Special items, net

(36.6

)

(4.1

)

267.7

(27.3

)

Operating income (loss)

469.7

506.2

1,490.1

1,407.5

Interest income (expense), net

(67.4

)

(72.6

)

(227.3

)

(258.4

)

Other pension and postretirement benefits (costs), net

7.6

9.6

27.5

32.3

Other income (expense), net

0.2

(2.7

)

0.2

0.2

Income (loss) before income taxes

410.1

440.5

1,290.5

1,181.6

Income tax benefit (expense)

(64.5

)

(147.4

)

(231.6

)

(338.5

)

Net income (loss)

345.6

293.1

1,058.9

843.1

Net (income) loss attributable to noncontrolling interests

(7.3

)

(6.1

)

(18.4

)

(17.7

)

Net income (loss) attributable to MCBC

$

338.3

$

287.0

$

1,040.5

$

825.4

Basic net income (loss) attributable to MCBC per share:

$

1.57

$

1.33

$

4.82

$

3.83

Diluted net income (loss) attributable to MCBC per share:

$

1.56

$

1.33

$

4.80

$

3.81

Weighted average shares - basic

216.0

215.5

215.9

215.4

Weighted average shares - diluted

216.6

216.5

216.6

216.5

Dividends per share

$

0.41

$

0.41

$

1.23

$

1.23

Molson Coors Brewing Company and Subsidiaries

U.S. Results of Operations

(In millions) (Unaudited)

Three Months Ended

Nine Months Ended

September 30,2018

September 30,2017

September 30,2018

September 30,2017

Financial volume in hectoliters(1)

17.206

17.163

50.262

52.125

Sales(1)

$

2,199.8

$

2,154.3

$

6,416.1

$

6,578.7

Excise taxes

(264.0

)

(262.1

)

(760.0

)

(797.7

)

Net sales(1)

1,935.8

1,892.2

5,656.1

5,781.0

Cost of goods sold(1)

(1,118.7

)

(1,080.1

)

(3,298.5

)

(3,285.5

)

Gross profit

817.1

812.1

2,357.6

2,495.5

Marketing, general and administrative expenses

(420.4

)

(458.2

)

(1,248.6

)

(1,322.7

)

Special items, net(2)

(29.7

)

(0.1

)

(34.5

)

(15.2

)

Operating income

367.0

353.8

1,074.5

1,157.6

Interest income (expense), net

7.6

14.0

8.0

14.0

Other income (expense), net

(0.4

)

(0.7

)

(1.1

)

(1.4

)

Income (loss) before income taxes

$

374.2

$

367.1

$

1,081.4

$

1,170.2

Add/(less):

Special items, net(2)

29.7

0.1

34.5

15.2

Acquisition and integration related costs(3)

0.6

1.5

2.6

6.8

Non-GAAP: Underlying pretax income (loss)

$

404.5

$

368.7

$

1,118.5

$

1,192.2

Add: Interest expense (income), net

(7.6

)

(14.0

)

(8.0

)

(14.0

)

Add: Depreciation and amortization

130.6

122.9

385.0

363.5

Adjustments to arrive at underlying EBITDA(4)

(1.4

)

—

(4.2

)

—

Non-GAAP: Underlying EBITDA

$

526.1

$

477.6

$

1,491.3

$

1,541.7

(1)

Includes gross inter-segment sales, purchases, and volumes, which
are eliminated in the consolidated totals.

(2)

See Part I—Item 1. Financial Statements, Note 6, "Special Items" of
the Form 10-Q for detailed discussion of special items. Special
items for the three and nine months ended September 30, 2018,
includes accelerated depreciation in excess of normal depreciation
of $1.4 million and $4.2 million, respectively. These accelerated
depreciation charges are included in our adjustments to arrive at
underlying EBITDA.

(3)

For the three and nine months ended September 30, 2018, $0.5 million
and $2.5 million, respectively, of integration costs were incurred
in cost of goods sold, and $0.1 million of integration costs in each
period were incurred in marketing, general & administrative
expenses. For the three and nine months ended September 30, 2017,
$0.6 million and $1.8 million, respectively, of integration costs
were incurred in cost of goods sold, and integration costs of $0.9
million and $5.0 million, respectively, were incurred in marketing,
general & administrative expenses.

(4)

Represents adjustments to remove amounts related to interest,
depreciation and amortization included in the adjustments to
non-GAAP underlying income above, as these items are added back as
adjustments to net income attributable to MCBC.

Molson Coors Brewing Company and Subsidiaries

Canada Results of Operations

(In millions) (Unaudited)

Three Months Ended

Nine Months Ended

September 30,2018

September 30,2017

September 30,2018

September 30,2017

Financial volume in hectoliters(1)

2.405

2.395

6.585

6.718

Sales(1)

$

519.4

$

535.2

$

1,418.9

$

1,440.2

Excise taxes

(130.5

)

(128.8

)

(348.8

)

(335.1

)

Net sales(1)

388.9

406.4

1,070.1

1,105.1

Cost of goods sold(1)

(218.8

)

(222.1

)

(641.9

)

(636.6

)

Gross profit

170.1

184.3

428.2

468.5

Marketing, general and administrative expenses

(87.2

)

(103.0

)

(262.5

)

(303.8

)

Special items, net(2)

(5.9

)

(5.9

)

(17.2

)

(8.1

)

Operating income (loss)

77.0

75.4

148.5

156.6

Other income (expense), net

0.5

1.8

(0.6

)

11.2

Income (loss) before income taxes

$

77.5

$

77.2

$

147.9

$

167.8

Add/(less):

Special items, net(2)

5.9

5.9

17.2

8.1

Acquisition and integration related costs(3)

0.1

0.5

0.4

3.3

Other non-core items(4)

—

—

—

(8.1

)

Non-GAAP: Underlying pretax income (loss)

$

83.5

$

83.6

$

165.5

$

171.1

Add: Depreciation and amortization

35.0

35.5

106.0

95.3

Adjustments to arrive at underlying EBITDA(5)

(5.9

)

(6.1

)

(18.0

)

(8.4

)

Non-GAAP: Underlying EBITDA

$

112.6

$

113.0

$

253.5

$

258.0

(1)

Includes gross inter-segment sales, purchases, and volumes, which
are eliminated in the consolidated totals.

(2)

See Part I—Item 1. Financial Statements, Note 6, "Special Items" of
the Form 10-Q for detailed discussion of special items. Special
items for the three and nine months ended September 30, 2018,
includes accelerated depreciation in excess of normal depreciation
of $5.9 million and $18.0 million, respectively, and for the three
and nine months ended September 30, 2017, includes accelerated
depreciation in excess of normal depreciation of $6.1 million and
$8.4 million, respectively, related to the planned closure of the
Vancouver brewery in 2019 and the Montreal brewery in 2021. These
accelerated depreciation charges in excess of normal depreciation
are included in our adjustments to arrive at underlying EBITDA.

(3)

For the three and nine months ended September 30, 2018, $0.1 million
and $0.4 million, respectively, of integration related costs were
incurred in cost of goods sold. For the three and nine months ended
September 30, 2017, $0.5 million and $3.3 million, respectively, of
integration related costs were incurred in cost of goods sold.

(4)

For the nine months ended September 30, 2017, a gain of $8.1 million
was recorded in other income (expense), net resulting from a
purchase price adjustment related to the historical sale of Molson
Inc.’s ownership interest in the Montreal Canadiens.

(5)

Represents adjustments to remove amounts related to interest,
depreciation and amortization included in the adjustments to
non-GAAP underlying income above, as these items are added back as
adjustments to net income attributable to MCBC.

Molson Coors Brewing Company and Subsidiaries

Europe Results of Operations

(In millions) (Unaudited)

Three Months Ended

Nine Months Ended

September 30,2018

September 30,2017

September 30,2018

September 30,2017

Financial volume in hectoliters(1)(2)

6.891

6.815

18.211

17.889

Sales(2)

$

860.6

$

831.2

$

2,353.0

$

2,141.8

Excise taxes

(282.7

)

(270.0

)

(814.7

)

(674.3

)

Net sales(2)

577.9

561.2

1,538.3

1,467.5

Cost of goods sold

(346.9

)

(330.8

)

(968.2

)

(872.7

)

Gross profit

231.0

230.4

570.1

594.8

Marketing, general and administrative expenses

(133.3

)

(138.9

)

(407.4

)

(403.7

)

Special items, net(3)

(0.6

)

2.8

(5.4

)

(2.4

)

Operating income (loss)

97.1

94.3

157.3

188.7

Interest income (expense), net

(1.5

)

0.8

(3.6

)

2.8

Other income (expense), net

0.4

(0.2

)

(0.8

)

0.3

Income (loss) before income taxes

$

96.0

$

94.9

$

152.9

$

191.8

Add/(less):

Special items, net(3)

0.6

(2.8

)

5.4

2.4

Acquisition and integration related costs(4)

0.2

0.1

0.5

0.4

Non-GAAP: Underlying pretax income (loss)

$

96.8

$

92.2

$

158.8

$

194.6

Add: Interest expense (income), net

1.5

(0.8

)

3.6

(2.8

)

Add: Depreciation and amortization

45.8

46.5

143.0

135.4

Adjustments to arrive at underlying EBITDA(5)

—

(1.0

)

(1.0

)

(5.0

)

Non-GAAP: Underlying EBITDA

$

144.1

$

136.9

$

304.4

$

322.2

(1)

Excludes royalty volume of 0.522 million hectoliters and 1.318
million hectoliters for the three and nine months ended September
30, 2018, respectively, and excludes royalty volume of 0.473 million
hectoliters and 1.277 million hectoliters for the three and nine
months ended September 30, 2017, respectively.

(2)

Includes gross inter-segment sales and volumes, which are eliminated
in the consolidated totals.

(3)

See Part I—Item 1. Financial Statements, Note 6, "Special Items" of
the Form 10-Q for detailed discussion of special items. Special
items for the nine months ended September 30, 2018, includes
accelerated depreciation in excess of normal depreciation of $1.0
million, and for the three and nine months ended September 30, 2017,
includes accelerated depreciation in excess of normal depreciation
of $1.0 million and $5.0 million, respectively, related to the
closure of our Burton South brewery in the U.K., which was completed
in the first quarter of 2018. These accelerated depreciation charges
in excess of normal depreciation are included in our adjustments to
arrive at underlying EBITDA.

(4)

For the three and nine months ended September 30, 2018, $0.2 million
and $0.5 million, respectively, of integration related costs were
incurred in cost of goods sold, and for the three and nine months
ended September 30, 2017, $0.1 million and $0.4 million,
respectively, of integration related costs were incurred in cost of
goods sold.

(5)

Represents adjustments to remove amounts related to interest,
depreciation and amortization included in the adjustments to
non-GAAP underlying income above, as these items are added back as
adjustments to net income attributable to MCBC.

Molson Coors Brewing Company and Subsidiaries

International Results of Operations

(In millions) (Unaudited)

Three Months Ended

Nine Months Ended

September 30,2018

September 30,2017

September 30,2018

September 30,2017

Financial volume in hectoliters(1)

0.577

0.603

1.734

1.774

Sales

$

80.7

$

74.5

$

231.6

$

222.1

Excise taxes

(13.7

)

(8.8

)

(39.2

)

(29.5

)

Net sales

67.0

65.7

192.4

192.6

Cost of goods sold(2)

(42.0

)

(43.9

)

(123.9

)

(130.7

)

Gross profit

25.0

21.8

68.5

61.9

Marketing, general and administrative expenses

(24.1

)

(27.0

)

(59.8

)

(72.7

)

Special items, net(3)

(0.4

)

(0.9

)

(3.2

)

(1.5

)

Operating income (loss)

0.5

(6.1

)

5.5

(12.3

)

Other income (expense), net

(1.5

)

0.1

(1.5

)

0.1

Income (loss) before income taxes

$

(1.0

)

$

(6.0

)

$

4.0

$

(12.2

)

Add/(less):

Special items, net(3)

0.4

0.9

3.2

1.5

Acquisition and integration related costs(4)

1.1

1.7

1.9

6.6

Non-GAAP: Underlying pretax income (loss)

$

0.5

$

(3.4

)

$

9.1

$

(4.1

)

Add: Depreciation and amortization

2.4

2.4

7.4

7.2

Non-GAAP: Underlying EBITDA

$

2.9

$

(1.0

)

$

16.5

$

3.1

(1)

Excludes royalty volume of 0.649 million hectoliters and 1.626
million hectoliters for the three and nine months ended September
30, 2018, respectively, and excludes royalty volume of 0.474 million
hectoliters and 1.501 million hectoliters for the three and nine
months ended September 30, 2017, respectively.

(2)

Includes gross inter-segment purchases, which are eliminated in the
consolidated totals.

(3)

See Part I—Item 1. Financial Statements, Note 6, "Special Items" of
the Form 10-Q for detailed discussion of special items.

(4)

For the three and nine months ended September 30, 2018, $0.5 million
of integration costs were incurred in cost of goods sold, and for
the nine months ended September 30, 2017, $1.4 million of
integration costs were incurred in cost of goods sold. For the three
and nine months ended September 30, 2018, integration costs of $0.6
million and $1.4 million, respectively, were incurred in marketing,
general & administrative expenses, and for the three and nine months
ended September 30, 2017, integration costs of $1.7 million and $5.2
million, respectively, were incurred in marketing, general &
administrative expenses.

Molson Coors Brewing Company and Subsidiaries

Corporate Results of Operations

(In millions) (Unaudited)

Three Months Ended

Nine Months Ended

September 30,2018

September 30,2017

September 30,2018

September 30,2017

Financial volume in hectoliters

—

—

—

—

Sales

$

0.2

$

0.3

$

0.7

$

0.9

Excise taxes

—

—

—

—

Net sales

0.2

0.3

0.7

0.9

Cost of goods sold

(23.2

)

45.2

(63.0

)

84.7

Gross profit

(23.0

)

45.5

(62.3

)

85.6

Marketing, general and administrative expenses

(48.9

)

(56.7

)

(161.4

)

(168.6

)

Special items, net(1)

—

—

328.0

(0.1

)

Operating income (loss)

(71.9

)

(11.2

)

104.3

(83.1

)

Interest expense, net

(73.5

)

(87.4

)

(231.7

)

(275.2

)

Other pension and postretirement benefits (costs), net

7.6

9.6

27.5

32.3

Other income (expense), net

1.2

(3.7

)

4.2

(10.0

)

Income (loss) before income taxes

$

(136.6

)

$

(92.7

)

$

(95.7

)

$

(336.0

)

Add/(less):

Special items, net(1)

—

—

(328.0

)

0.1

Acquisition and integration related costs(2)

8.1

11.7

24.6

36.3

Unrealized mark-to-market (gains) and losses(3)

23.2

(45.3

)

62.8

(85.0

)

Non-core other pension and postretirement benefits (costs), net(4)

2.0

—

2.1

(2.9

)

Non-GAAP: Underlying pretax income (loss)

$

(103.3

)

$

(126.3

)

$

(334.2

)

$

(387.5

)

Add: Interest expense (income), net

73.5

87.4

231.7

275.2

Add: Depreciation and amortization

0.8

1.0

2.8

2.9

Non-GAAP: Underlying EBITDA

$

(29.0

)

$

(37.9

)

$

(99.7

)

$

(109.4

)

(1)

See Part I—Item 1. Financial Statements, Note 6, "Special Items" of
the Form 10-Q for detailed discussion of special items.

(2)

In connection with the acquisition, for the three and nine months
ended September 30, 2018, we have recorded $8.1 million and $24.6
million, respectively, of integration costs within marketing,
general & administrative expenses, and for the three and nine months
ended September 30, 2017, we have recorded $11.7 million and $36.3
million, respectively, of integration costs within marketing,
general & administrative expenses.

(3)

The unrealized changes in fair value on our commodity swaps, which
are economic hedges, are recorded as cost of goods sold within our
Corporate business activities. As the exposure we are managing is
realized, we reclassify the gain or loss to the segment in which the
underlying exposure resides, allowing our segments to realize the
economic effects of the derivative without the resulting unrealized
mark-to-market volatility.

(4)

For the three and nine months ended September 30, 2018, we
recognized special termination benefit charges related to the
restructuring program in the U.S. segment. See Part I—Item 1.
Financial Statements, Note 13, "Pension and Other Postretirement
Benefits" of the Form 10-Q for discussion. For the nine months ended
September 30, 2017, includes the retrospective impact of the FASB's
new pension and OPEB accounting standard and moving the non-service
cost component of net periodic pension and other postretirement
benefits to the Corporate segment. See Part I—Item 1. Financial
Statements, Note 2, "New Accounting Pronouncements" of the Form 10-Q
for detailed discussion.